Domino's revenue jumps more than expected
Reuters
Published Oct 18, 2016 07:38AM ET
Domino's revenue jumps more than expected
(Reuters) - Domino's Pizza Inc (N:DPZ) on Tuesday reported a bigger-than-expected 17 percent jump in quarterly revenue as its U.S. division overcame intense competition that is taking a bite out of industry sales.
Sales at domestic franchise units open at least one year were up 12.9 percent in the third quarter ended Sept. 11. Analysts had expected a rise of 9.4 percent, according to polling firm Consensus Metrix.
Domino's results come as Wall Street analysts are tempering expectations for rivals such as McDonald's Corp (N:MCD) and Dunkin' Brands Group Inc (O:DNKN), amid intensifying competition from upstart chains, meal-kit sellers and grocery stores - where prices versus restaurants are at a 30-year low.
The world's biggest pizza delivery chain is a leader in digital ordering. Its main rival, Yum Brands Inc's (N:YUM) Pizza Hut, which has been struggling, reported a 2 percent decline in U.S. same-store sales for the latest quarter.
Domino's net income jumped almost 25 percent to $47.2 million, or 96 cents per share, topping the average analyst estimate of 90 cents per share, according to Thomson Reuters I/B/E/S.
The Ann Arbor, Michigan-based company had 12 percent fewer shares in the latest quarter, compared with the year-earlier period, which also boosted per-share earnings.
Total revenue climbed 17 percent to $566.7 million, beating analysts' average estimate of $542.6 million, also helped by higher supply chain revenue and new store openings.
Domino's shares were up 3 percent at $156.70 in premarket trading.
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Written By: Reuters
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